Unity has confirmed another round of layoffs, this time affecting 265 employees—equivalent to 3.8% of its workforce. This decision is linked to the termination of Unity's agreement with Weta, the renowned VFX studio recognized for its work on The Lord of the Rings series, and owned by filmmaker Peter Jackson.

Unity's integration with Weta occurred in 2021 when it acquired the teams responsible for Weta Digital's tools, pipeline, technology, and engineering in a substantial $1.63 billion deal.

In addition to the layoffs, Unity revealed plans to shut down offices in 14 locations globally, including notable hubs in Berlin and Singapore. The remaining branches, such as Bellevue, Washington, and the San Francisco headquarters, will also see significant reductions. The specifics of these closures will be finalized after thorough employee consultations, emphasizing Unity's commitment to a thoughtful process.

Jim Whitehurst, acting as interim CEO following the departure of long-serving CEO John Riccitiello, stated, "While no additions have been finalized, it's clear that we will reduce the number of things we are doing overall." Whitehurst's leadership comes after challenges, including the departure of the previous CEO in the aftermath of the runtime fee controversy.

This marks the third round of substantial layoffs for Unity in 2023, following the announcement of approximately 300 job cuts in January and an additional 600 in May. The total layoffs for the year now exceed 1,100. Unity had previously hinted at the potential for further redundancies in its recent financial results. The current headcount stands at around 7,000 as Unity navigates this phase of organizational realignment.

Source: adapted from an article by James Batchelor, Editor-in-chief at GamesIndustry.biz.